Silk Shareholders Face Crucial Vote as DP World Acquisition Nears Completion
Silk Logistics Holdings has scheduled its shareholder meeting for August 1 to vote on the proposed $2.14 per share acquisition by DP World Australia, with an independent expert reaffirming the deal’s fairness.
- Scheme Meeting fixed for August 1, 2025
- Supplementary Scheme Booklet released with updated expert report
- Independent expert confirms scheme remains in shareholders’ best interests
- Foreign Investment Review Board approval condition satisfied
- Silk Board unanimously recommends voting in favor of the scheme
Scheme Meeting Date Confirmed
Silk Logistics Holdings Limited (ASX, SLH) has announced that the Supreme Court of New South Wales has set the date for its Scheme Meeting on Friday, 1 August 2025. At this meeting, Silk shareholders will vote on the proposed acquisition of the company by DP World Australia Limited via a scheme of arrangement, offering $2.14 cash per share.
Updated Information and Expert Opinion
Alongside the meeting date, Silk has issued a Supplementary Scheme Booklet containing updated information about the transaction, including a supplementary independent expert’s report prepared by Kroll Australia Pty Ltd. This report reaffirms the original conclusion that the scheme is fair and remains in the best interests of Silk shareholders, assuming no superior proposal emerges.
Kroll’s analysis considered recent economic and industry developments, Silk’s half-year financial results, updated broker forecasts, and comparable market transactions. Despite some headwinds in the logistics sector and minor downward revisions in earnings forecasts, the expert maintains that the offer price falls within a reasonable valuation range for Silk shares.
Regulatory Approvals and Board Endorsement
The announcement confirms that the Foreign Investment Review Board (FIRB) has granted unconditional approval for the acquisition, satisfying a key condition precedent. Additionally, the Australian Competition & Consumer Commission (ACCC) has indicated it will not oppose the scheme, clearing a significant regulatory hurdle.
The Silk Board of Directors continues to unanimously recommend shareholders vote in favor of the scheme, citing the absence of any superior proposal and the independent expert’s positive assessment. Directors holding shares have declared their intention to vote in favor, subject to certain qualifications.
Shareholder Voting and Proxy Details
Shareholders are encouraged to review the Supplementary Scheme Booklet in full before making their voting decisions. The company has outlined clear instructions for lodging proxy votes, including online submission options. Proxy forms must be received by 10, 00am Sydney time on Wednesday, 30 July 2025, to be valid for the meeting.
For shareholders who have not elected electronic communications, hard copies of the supplementary materials and proxy forms will be dispatched by 24 July 2025. The company has also provided contact details for shareholder inquiries and access to the scheme documents online.
Looking Ahead
If approved by the requisite majorities and sanctioned by the Court, the scheme is expected to become effective shortly after the meeting, with implementation anticipated in mid-August 2025. Silk shares will be suspended from trading following the Court’s approval, marking a significant milestone in the company’s transition to DP World ownership.
Bottom Line?
With regulatory approvals secured and expert endorsement reaffirmed, all eyes now turn to the shareholder vote that will decide Silk’s next chapter under DP World.
Questions in the middle?
- Will any last-minute superior proposals emerge to challenge the scheme?
- How will Silk’s financial performance evolve post-acquisition amid ongoing economic uncertainties?
- What are the implications for Silk’s directors’ options and incentives following the scheme?
